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What is to be observed for loans with discount who want to borrow money at a bank to invest it in real estate or the construction of an own home, which a loan at a discount is offered by the financial institution under certain circumstances. The real estate portal myimmo.de reported, what is this funding and what the borrower should pay attention. A discount is a discount, which is calculated on a loan. Specifically, this means that a part of the loan amount to the borrower is paid off. Interest is the total amount of credit. From 100 euro only 93 euros to the borrower will remain so at a discount rate of 7 per cent paid, 7 euros at the Bank. The borrower has to pay back the entire 100 euro plus the agreed interest. The discount is calculated in this variant as a kind of already accomplished redemption.

Therefore, the effective interest rate on a loan with discount are mostly relatively small. Consideration of borrowing, just not the whole sum will be disbursed. In any case, the recorded credit is so higher than the amount actually required. Those interested in corresponding offers always in mind should have this fact. The discount offers but tax benefits, if real estate for rent to be financed with the loan. In this case, the discount can be used off the tax as advertising costs. Self-occupied real-estate this is no longer the case since 1996. More information: news.myimmo.de/disagio/11300.html Unister GmbH Lisa Neumann

Investors

Shares flop – top property! Investing in real estate experience an unexpected upswing – because what appears to otherwise be so sure in times of recession and deflation? The collapse of major U.S. Bank Lehmann brothers in 2008 can be considered as the beginning of a global economic crisis, which has of course also great impact on Europe. This is evident especially in the decline of exports, tourism and capital inflows. In many European countries is the economic climate of recession and deflation and has direct impact on growth rates, which have decreased or even stagnate. Especially on the basis of the extreme example Greece that escaped almost a sovereign default, but also in countries such as Italy, Portugal or Spain this is clearly.

The fear of the crisis changed but also the investment habits of people who invest less in securities as rather in real estate due to the current uncertainty. The request for real estate has increased considerably in recent years. This form of investment offers Investors greater security, because the real estate market has proved largely resistant to crisis investment. The timing for the purchase of a property was seldom cheaper than in recent months, which also increased the demand, and the real estate market seems now as lifeless. And so it is not surprising that many foreign investors are intensively involved in the purchase of domestic real estate. Purchasing a property appears not only in the domestic market but also abroad as useful, because there the conditions appear very cheap, as in Spain.

However, it is to notice that the risk of such investment from abroad to settle something higher is because it often isn’t familiar with foreign laws and the prevailing real estate law. It is accordingly important for such transactions also, to consult a legal advisor in real estate law locally, because this can reduce certain risks. Is also for domestic investment as well as legal advice to recommend as investments with a certain risk are connected and overlooked many important things when buying a property. This is particularly important, especially for young families or for individuals who have little experience with real estate. The high demand for real estate has especially negative effects on young families who are looking for the appropriate cookie, because many real estate agents have hardly something on sale. In addition families and low-income earners facing rising prices in the real estate sector, so that it is to make a suitable real estate agent on the side, which one has the appropriate objects but also right technical expertise has also of crucial importance and accordingly competently advises investors. So is not recommended, wild to buy real estate without knowing the risks. Wrong investment can cost a lot money especially in this area. Although the demand is high and many people have already invested in real estate, you should not be hasty something rush into, the risks of which it still cannot estimate.